This information relates to McCall Real Estate Agency.

Oct. 1 Stockholders invest $30,960 in exchange for common stock of the corporation.

2 Hires an administrative assistant at an annual salary of $39,960.

3 Buys office furniture for $3,630, on account.

6 Sells a house and lot for E. C. Roads; commissions due from Roads, $11,130 (not paid by Roads at this time).

10 Receives cash of $230 as commission for acting as rental agent renting an apartment.

27 Pays $640 on account for the office furniture purchased on October 3.

30 Pays the administrative assistant $3,330 in salary for October.

Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Question

Business

Ben Ayers

25 October, 00:43

This information relates to McCall Real Estate Agency.

Oct. 1 Stockholders invest $30,960 in exchange for common stock of the corporation.

2 Hires an administrative assistant at an annual salary of $39,960.

3 Buys office furniture for $3,630, on account.

6 Sells a house and lot for E. C. Roads; commissions due from Roads, $11,130 (not paid by Roads at this time).

10 Receives cash of $230 as commission for acting as rental agent renting an apartment.

27 Pays $640 on account for the office furniture purchased on October 3.

30 Pays the administrative assistant $3,330 in salary for October.

Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

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Answers (1)

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Martha Barry · Answer 1

The journal entries are as follows

1. Cash A/c Dr $30,960

To Common stock A/c $30,960

(Being the cash is invested in exchange for common stock)

2. No journal entry is required

3. Office furniture A/c Dr $3,630

To Account payable A/c $3,630

(Being the office furniture is purchased on account)

4. Account receivable A/c Dr $11,130

To Service revenue $11,130

(Being the goods are sold on credit)

5. Cash A/c Dr $230

To Service revenue A/c $230

(Being cash received is recorded)

6. Account payable A/c Dr $640

To Cash A/c $640

(Being the payment is made)

7. Salaries expense A/c Dr $3,330

To Cash A/c $3,330

(Being the salaries is paid for cash)